Shares of Fossil Inc. (FOSL) are soaring in midday trading after the company blew out Q1 results and provided solid guidance for fiscal 2011. FOSL shot up 13 percent this morning to $106.57, the highest intraday price since April 1993. The Texas-based apparel and accessories retailer announced that its Q1 profits surged 55% on 36.6% revenue growth. Fossil said it earned $55.8 million, or $0.86 a share, compared with $35.9 million, or $0.53 a share, on a y/y basis. Revenue rose to $537 million compared to $393.2 million.The results beat Wall Street forecasts. Analysts on average were estimating earnings of $0.66 a share, on revenue of $512 million. Fossil also forecast full-year earnings of at least $4.44 a share on an adjusted basis, more than the $4.37 consensus.
Technically speaking, the equity has had a very strong move today, and continues to rip higher as it breaks the newly formed resistance zone surrounding the mid $106 area, pushing through $107.00 per share. The stock has seen a few minor “dips” down off the highs, but all of them were bought, suggesting that at this point all of the action — FOSL shares have had a greater than 13% range in today’s trading — looks to be entirely consolidative in nature. Fossil will likely move to the $108.00 level before pulling back.
From a valuation perspective, the security currently trades at a trailing P/E of 28.37, a forward multiple of 20.81 and a P/E to Growth ratio of 1.08. The company has a 1-year return on equity (ROE) and Return on Assets (ROA) of 26.23% and 17.49%, respectively. Shares are seeing huge volume; mid-way through the session FOSL has already traded nearly 3 million shares, which is 3x its 90-day daily average volume.
At last check, Richardson, Texas-based Fossil’s shares were trading above $107 level. They had closed at $94 on Monday on Nasdaq.